Monetary survey at the end of 1999 and the supervisory measures on the banking system performance
Governor's presentation at the parliamentary Commission of Economy, Finance and Privatization

According to the operative evidence of the commercial banks, banking system's deposits during December increased by Lek 3.5 billion. Deposits in foreign currency of Lek 2,5 billion held the principal allotment in this
growth, while deposits in domestic currency comprised Lek 1 billion. The Savings Bank shared the main contribution in this growth on more than 60 per cent of the entire system, while the rest was occupied by private and joint venture banks.

According to these data results, December was characterized by higher rates of deposits in foreign currency on the entire system. December reflected a different financial situation from the previous months considering the growth of:

• the budget deficit by Lek 10.7 billion ( from the end of November);·
• the currency outside the banks which experienced the higher annual rates of about Lek 6.1 billion;
• the currency issuing by about Lek 4.0 billion.

After an optimal performance of banking deposits in domestic currency during the first half of December the rest of the month was characterized by withdraws in time deposits. This phenomenon evidenced in the Savings
Bank, was contrasted by a quiet situation in the other banks. According to the operative data, these banks growth amounted to Lek 249.6 billion at the end of the month. The performance of time deposits in this bank was influenced by the public effect of some daily press articles, concerning the safety of public deposits in domestic currency at Savings

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